Vikram Solar, Shreeji Shipping, Gems, Patel Retail: Stock analyst top pick, GMP for 4 IPOs

4 IPOs are the set to kick-off for subscription on Tuesday, August 19 and investors are likely to be spoilt with problem of plenty, wondering which IPOs should the apply for and which ones are to be skipped from the IPO rush. All these four issues, which should conclude for bidding on Thursday, August 21, shall be cumulatively raising Rs 3,185 crore via IPO.

Vikram Solar, based in Kolkata, is the largest issuer among the four, with plans to raise Rs 2,079.37 crore. This total includes a fresh share sale valued at Rs 1,500 crore and an offer-for-sale of up to Rs 1,74,50,882 equity shares by existing shareholders. Shares are being offered in the price range of Rs 315-332, with a lot size of 45 equity shares.

Following Vikram Solar, Gem Aromatics and Shreeji Shipping Global are also entering the IPO market. Gem Aromatics, a Mumbai-based manufacturer of specialty ingredients, aims to raise Rs 451.25 crore by pricing its shares between Rs 309-325 per share, with each lot consisting of 46 shares. Shreeji Shipping Global, based in Jamnagar, plans to gather Rs 410.71 crore, with shares priced between Rs 240-252 per share, in lots of 58 shares.

Patel Retail, a retail supermarket chain operating primarily in tier-III cities, is the smallest issuer among the four, seeking to raise Rs 242.76 crore. The shares are to be priced between Rs 237-255 and are available in lot sizes of 58 equity shares. This IPO will enable Patel Retail to further expand its operations in suburban areas.

Latest GMPs Vikram Solar has seen a fall in its grey market premium (GMP), falling to Rs 60-62 from Rs 68 earlier. Shreeji Shipping's GMP has seen a mild decline to Rs 25-26 from Rs 30. GMP for Patel Retail has fallen to Rs 35 apiece from Rs 40. On the contrary, Gem Aromatics'  grey market premium has remained firm around Rs 34-35 apiece. All 4 IPOs are signaling 12-18 per cent listing gains.Brokerage views Stock markets experts are suggesting investors with limited funds to prioritise Vikram Solar, followed by Shreeji Shipping Global in the current IPO flurry. They also have positive views on Gems Aromatic and Patel Retail, but they take a back seat in their priority list for the time being. Santosh Meena, Head of Research at Swastika Investmart believes that Vikram Solar's valuation is exorbitantly priced, which makes it a high-risk, long-term bet, but he favors Shreeji Shipping due to its niche business model focused on dry bulk cargo at non-major ports. "Patel Retail is a fully priced issue, bit regional concentration, competition and high debt-to-equity ratio are key risks. Gem Aromatics deals with risks of single product category, declining return ratios and forex exposure" he said. SimranJeet Singh Bhatia, Senior Equity Research Analyst at Almondz Global also picked Vikram Solar as its top pick, followed by Shreeji Shipping Global. Gems Aromatic and Patel Retail are his third and fourth choices to apply in the IPO rush, respectively. "Vikram Solar specializes in the production of high-efficiency solar PV modules and to provide comprehensive EPC Solutions, while Shreeji's key strengths include a highly trained technical workforce, extensive inventory of cargo handling equipment, and a dedicated fleet of equipment," Bhatia said, supporting his views. SBI Securities has also picked Vikram Solar, Shreeji Shipping Global, Gem Aromatic and Patel Retail, respectively, in its IPO priority list. It has a 'subscribe' rating for the first three issues, while it remains 'neutral' on the last one. SBI Securities said that the valuation of Vikram Solar is in-line with peers on EV/Ebitda basis and margins are set to improve as the solar cell capacity comes onstream in FY27. Shreeji Shipping will use the proceeds from the issue to acquire Dry Bulk Carrier in the supramax' category, further strengthening its fleet size, it said. "Gem Aromatics' business is working capital heavy due to extended receivable days on exports; higher inventory of mint due to limited procurement period; and higher SKUs to cater to client’s requirements," said SBI Securities. However, the brokerage firm finds Patel Retail's valuation relative to the peers. Lakshmishree Investments also suggested a 'subscribe' rating on Vikram Solar for investors seeking exposure to India’s clean energy value chain, while Canara Bank Securities has a 'subscribe' for Shreeji Shipping given its operational resilience, brand equity, and valuation comfort. Choice Broking has a 'subscribe' rating for Patel Retail as its processing division is slated for capacity expansion.